ONE PERSON COMPANY (OPC)

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Introduction:

OPC is registered as a Private Company with one member, one nominee and may also have at least one director.
Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC. A person can be member in only one OPC.

  • One Shareholder: Company Incorporation Rules provide that only a natural person who is a resident of India and also a citizen of India can form a one person company. It means that other legal entities like companies or societies or other corporate entities cannot form a one person company.
  • One Director: One Person Company may have only one director. But at the same time there is no bar on more number of directors. However, as per the Act, the total number of directors shall not be more than 15.
  • One Nominee: The person forming the One Person Company has to nominate a Nominee with his/her written consent who, in the event of death or inability to contract the owner of the One Person Company, shall come forward and take over the reins of the one person company.

For the above purpose, the term “resident in India” means a person who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding financial year.
The requirements of being an Indian resident and citizen of India also apply to the nominee. No minor shall become member or nominee of OPC. The subscriber to the memorandum of a One Person Company shall nominate a person, by obtaining prior written consent of such person.

Procedure of Incorporation of One Person Company (OPC)

  • Reservation of Unique Name (Web Form): The first step in the incorporation of any one person company is to choose an appropriate name and making an application in RUN (Reserve Unique name) form with proposed two names of the OPC along with proposed objectives of the OPC. (Only two names can be applied in order of preference).Name Approval Process: Two names can be applied in Reservation of Unique Name (Web Form) in order of preference with the proposed objectives of the One Person Company. Approved name shall be valid for 20 days from the date of approval. After the expiry of 20 days, fresh application in RUN form needs to be made for further extension of 20 days.
  • A company name can be reserved quickly and easily even before obtaining a digital signature.
  • To apply for name using RUN web-form, and provide two names in order of preference with proposed objectives of the OPC.
  • However, Companies Incorporation Rules, 2014 states that a company or LLP cannot be registered with an identical or similar name to that of an existing company, LLP or trademark.
  • On submission of the RUN, the requested names would be checked by MCA personnel at the Central Registration Centre (CRC) against company, LLP and trademarks for tests of similarity. If the name is unique and conforms to the Companies Act 2013, name approval would be provided by CRC and the applicant would be intimated through an email, however if name is not unique; and identical to existing company/LLP or trademark already registered then name rejection intimation through email provided by the MCA with an option of resubmission of RUN form with two different names.

Obtain Digital Signature of the subscriber cum Director for filing of Form No INC-32, Spice-MOA & Spice-AOA.

  • Obtaining Director Identification Number (DIN) of subscriber cum Director through filing of Form No. lNC-32 (SPICe) in case subscriber cum Director does not have a DIN.
  • Filing of Incorporation forms to MCA portal (i.e., SPICE (Form No. lNC-32), Spice-MOA & Spice-AOA):

-Required Documents for OPC Incoporation:

  • INC-9: Declaration given by subscriber cum director. 
  • Affidavit from subscriber cum director for non-acceptance of deposits.
  • Form DIR-2: Consent of a Director.
  • The consent of such nominee of member obtained in Form No. lNC-3 along with proof of identity and proof of residence.
  • Address proof of the Proposed Registered Office of the Company (i.e. Rental Agreement/Lease Deed/Conveyance Deed) along with the copy of utility bill not older than 2 months.

, shall be attached in SPICE (Form No.lNC-32).

  • Submission of SPICE- Form INC-32:- On submission of the incorporation application, OPC incorporation certificate along with PAN and TAN is provided by the MCA.
  • Declaration to be filed to ROC for commencement of Business in E-Form INC 20A within 180 days of incorporation of One Person Company along with the proof of receipt of share application money from subscriber.

If you need any assistance in incorporating OPC, please feel free to reach us at contact@msassociates.pro or call us on 080-41633750 or 9880542668.

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